The management of Transnational Corporation of Nigeria (Transcorp) Plc has assured that it would sustain its improved performance outlook for the conglomerate in the remaining quarters of the year 2021.
The conglomerate made this known at its half year virtual analyst parley. In H2, 2021, the Group targets to generate 641 average capacity and 537 average capacity for Transcorp Power Limited and Transafam Power Limited, while the Group targets occupancy rate of 67 per cent and 54 per cent for Trancorp Hotels and Transcorp Hotels Calabar.
The president/Group chief executive officer, Transcorp, Owen Omogiafo, said that although the COVID-19 pandemic affected global businesses last year, the positive economic turnaround in economies especially Nigeria has made Transcorp’s H1 2021 financial performance better than it was in H1 2020.
“The Conglomerate with strategic investments in the Power, Hospitality, and Energy sectors, recorded a profit after tax of N6.5 billion, rising by 713 per cent up from N0.8 billion recorded in June of the previous year. Its revenue rose by 53 per cent, from N35.0 billion in June 2020 to N53.3 billion in H1 2021, gross profit grew by 60 per cent, from N14.7 billion in June 2020 to N23.5 billion in June 2021 while Profit before tax (PBT) rose by 689 per cent from N0.9 billion in June 2020 to N7.1 billion in June 2021.
“However, its operating expenses grew to N7.49 billion from N6.24 billion due to the reflection of inflation in the nation’s economy, Omogiafo said. Whilst reiterating the Conglomerate’s commitment towards producing long-term value and sustainable impact, she revealed that the company is growing impressively in its topline and bottomline indices while adding that its entities are also growing.
Speaking on the outlook of the company in H2 2021, Omogiafo said, “We do not plan to rest on our oars. We will continue to sweat our existing assets and explore new frontiers, as we continue to deliver on our purpose of improving lives and transforming Nigeria.”
Corroborating her, the managing director, Transcorp Power Limited, Christopher Ezeafulukwe, said the company intends to gradually sustained the increase of power generation over the next five years, saying that it is targeting 258 megawatts capacity by December 2021.
“We will continue to engage with key stakeholders to sell our stranded capacity through the West African Power Pool (WAPP), partnerships with Discos, eligible customers, among others. We also want to continue to engage with NBET to ensure our invoices are settled on time to improve liquidity,” he said.